ECONOMY - FINANCE - BUSINESS / Banks

ECB aligns its supervision with new EU rules governing treatment of new non-performing loans

Brussels, 22/08/2019 (Agence Europe)

The European Central Bank (ECB), as the sole supervisor of the main banks in the euro area, announced on Thursday 22 August that it was revising its expectations for the prudential provisioning required for new non-performing loans (NPLs) by aligning them with the Regulation (2019/630).

This regulation sets the minimum coverage ('Pillar 1') of losses inherent in the stock of non-performing loans granted after 26 April 2019 (see EUROPE B12162A11). For these NPLs, the provisioning must be...